Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.
Recruiting & Hiring Practices
The South Carolina Illegal Immigration and Reform Act requires that all employers in South Carolina enroll and participate in E-Verify which allows participating employers to electronically verify the employment eligibility of their employees. E-Verify compares information from Form I-9 to government records to confirm that an employee is authorized to work in the U.S.
State Regulation: South Carolina Illegal Immigration and Reform Act
Payment of Wages Law
South Carolina employers that have employed at least 5 employees at any point in time in the last year must give a written notice of hours and wages (among other terms of employment) to each new hire. Any changes must also be made in writing at least seven calendar days before they become effective, except in the case of a wage increase.
South Carolina’s Office of Wages and Child Labor: Forms
When classifying workers as employees or independent contractors, there are a few things to consider, including the different tests that apply under different federal and state employment laws, and potential penalties and other liabilities for misclassifying employees as independent contractors. Certain state laws apply tests that are more stringent than the guidance provided by federal agencies, such as the IRS and Department of Labor, to apply in conjunction with federal laws.
South Carolina courts typically follow a common law “right to control test” similar to guidance provided by the IRS.
You can read our general Help Center article on contractors and view information on how to determine if someone is a contractor or employee in South Carolina in the relevant section at the link below.
Mineral: South Carolina Independent Contractors*
Minimum Pay and Overtime Requirements
South Carolina does not currently have a state minimum wage or overtime law. Federal minimum wage and overtime requirements (and exemptions) under the Fair Labor Standards Act (FLSA) apply.
Meal & Rest Breaks
South Carolina does not currently have mandated meal or rest breaks for private employers.
Under South Carolina’s Lactation Support Act, all employers must allow employees reasonable and private opportunities to express milk. This may include reasonable paid or unpaid break time in a private place other than a bathroom stall during the work day.
South Carolina Human Affairs Commission: Lactation Support Act FAQ
Harassment & Discrimination
In addition to protections under Federal law, South Carolina law prohibits employment discrimination based on membership in any protected class by employers covered under South Carolina’s anti-discrimination laws.
South Carolina Human Affairs Law
Mineral: South Carolina Employment Discrimination and Accommodations*
To provide additional support in this area, Justworks has teamed up with EVERFI to offer customers free access to a suite of harassment prevention and inclusion trainings.
South Carolina employers should familiarize themselves with specific compliance requirements for separating employees.
South Carolina law requires that employees be paid their owed wages within 48 hours of the day of separation, or on the next regularly-scheduled payday (so long as it does not exceed 30 days). This applies to both voluntary and involuntary separations, with or without notice.
In South Carolina, the question of whether employers are required to pay out vacation upon separation is dictated by the employer policy. Employers should clearly set forth in writing any policy with respect to unused vacation.
Additionally, upon separation from employment, employers must provide employees with a notification of the availability of unemployment insurance benefits.
South Carolina LLR: Wages and Child Labor FAQ
Business Closings and Layoffs
The Federal WARN Act imposes certain notice and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. In South Carolina, businesses facing these issues are encouraged to notify the dislocated worker unit of the Department of Employment and Workforce regardless of whether they are required to under the WARN Act. For more information, visit the links below.
US Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
SC Department of Employment and Workforce - Rapid Response
*Be sure you’re logged into your Justworks account with administrative permissions to access Mineral.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.